METROPOLITAN HOUSING COALITION The preparation of this report was funded in part by the Louisville/Jefferson County Metro Government through its Neighborhood Stabilization Program (NSP-1) grant. HE FOCUS TOPIC of the 2012 State of Metropolitan Housing Report • MHC published Louisville’s Foreclosure Recovery: Understanding and is vacant properties, an issue MHC has been working on for Responding to the Impact of Foreclosure Sales this year; our partner Tseveral years through the Louisville Vacant Properties Campaign, and researcher/writer was the Network Center for Community which MHC facilitates monthly. MHC’s years of work is now part of a Change. This report showed that just by being the subject of a larger planning process that involves city government, Metro Council, residential foreclosure, a piece of property was likely to lose value Bloomberg Philanthropies, and the Vision process for our city. Within the and would lose value at a greater rate if the property was sold at a focus topic, MHC reports on the impact of the Neighborhood Stabilization foreclosure sale. This report highlighted the need to keep people Program in Louisville, so you can see how a concerted effort to improve in their homes. When that is not possible, the proposed registry neighborhoods with vacant properties can pay off. of properties in foreclosure along with a local company or person The 2012 Report continues to update information using the 2010 Census responsible for upkeep of vacant properties is an important piece of and will combine that with the new way that information is being updated preserving value of property and neighborhoods. through the American Community Survey. In 2009, MHC introduced data • MHC’s advocacy around foreclosure issues helped ensure that the about the number of students in Jefferson County Public Schools who Kentucky Attorney General used funds from the National Mortgage experience being homeless in a school year, and we have tracked that Settlement to support homeownership counseling, vacant property data ever since. For the fi rst time, the State of Metropolitan Housing responses, affordable housing development, and legal assistance in Report includes data from all counties in the Metropolitan Statistical Area Louisville. Though this funding was a victory, advocacy for increased (MSA) on the number of students who experience being homeless in the foreclosure mitigation and legal assistance for homeowners at risk of school year. The need continues; even after updating the waiting list in foreclosure must continue. Jefferson County, there are over 21,000 income eligible households on the • MHC conducted research for the Louisville Urban League on the Louisville Metro Housing Authority waiting list for housing assistance. Louisville Metro Homelessness Prevention & Rapid Re-Housing The data in the 2012 SMHR shows: Program (HPRP). Our research showed that HPRP was a successful • The 2011 homeownership rate for the Louisville MSA was 61.7 percent, temporary intervention that prevented homelessness for households the lowest rate of homeownership for the Louisville area since the State impacted by the Recession. The lessons learned from this successful of Metropolitan Housing Report began tracking the fi gure in 2003. housing subsidy, including a fi xed assistance rate depending on family size, should be more widely incorporated into housing assistance • During the 2011-2012 school year there were 12,389 homeless programs. students in Jefferson County Public Schools, and an additional 868 homeless students in the surrounding Louisville MSA counties. • Join the Local Options for Kentucky Liens (LOKL) coalition to give local control of collecting delinquent property taxes back to Kentucky’s • Following the redistricting in November 2011, most Louisville Metro counties and to update Louisville’s Land Bank. MHC is working with Council districts saw little change in the percentage of subsidized many groups in this effort. housing units in their respective districts. Council districts 1, 2, 3, 4, 5, 6, and 15 combined are still home to nearly three-fourths of all • MHC continues to advocate for energy effi cient rehab programs for subsidized units within Louisville Metro. low income households, particularly as we face rising energy costs. Investments like these have a huge impact on affordability of shelter. • The median household income for renters in the Louisville MSA is $25,633, which falls short of the income needed to afford a two- • MHC continues to operate a loan pool for non-profi t developers with bedroom unit at Fair Market Rent (FMR) by $2,287 annually. the support of the Kentucky Housing Corporation. Despite setbacks in funding, the pool was able to invest in a number of units, both in new • The Louisville MSA saw a total of 5,667 foreclosures in 2011, an increase construction and rehab, in our community. of 140 percent since 2002, but a decrease of 32 percent from 2010. • The Louisville Affordable Housing Trust Fund (LAHTF) met a challenge While the data paint a picture of need, MHC always looks to how things grant from Mayor Fischer and received funds from the National can be better, and this year is no exception. Instead of just listing our Mortgage Settlement. Join us in advocating for funding for the LAHTF. accomplishments since last year, we give you a way to work on all of these issues. We want to thank the major donors who have made our work possible, as well as the members of MHC who support this work fi nancially and MHC is working on ways to increase investment in fair and affordable with their time and commitment. housing, and we see several bright spots. • The Land Development Code (LDC) is under review, and there are great Sincerely, suggestions for making fair and affordable housing a possibility. You can join MHC’s campaign to increase opportunities for multi-family housing and smaller lot sizes that allow increased density in more of Jefferson County. • The Louisville Metro Human Relations Commission, the University of Louisville Anne Braden Institute for Social Justice Research and MHC Christie McCravy Cathy Hinko are producing a 20-Year Plan to end segregation, and you can join us in MHC Board President Executive Director implementing that plan. Metropolitan Housing Coalition i 2012 State of Metropolitan Housing Report Letter to MHC Members ......................................................................................................... i Focus Topic: Vacant Properties ............................................................................................. 1 Neighborhood Stabilization Program Investment In Louisville ........................................10 Measures of Housing Affordability Measure 1: Concentration of Subsidized Housing ...................................................................13 Measure 2: Housing Segregation ............................................................................................16 Measure 3: Renters with Excessive Cost Burden ....................................................................18 Measure 4: Production and Rehabilitation of Affordable Housing ............................................20 Measure 5: Homeownership Rate ...........................................................................................22 Measure 6: Access to Homeownership ..................................................................................23 Measure 7: Foreclosures .........................................................................................................25 Measure 8: Homelessness ......................................................................................................27 Measure 9: Community Development Block Grants (CDBG) and HOME Funds .......................29 Appendix Data Sources.......................................................................................................................................31 References ..........................................................................................................................................32 2012 Annual Meeting Sponsors ...................................................................................................................33 State of Metropolitan Housing Report Sponsors ........................................................................................33 MHC Board of Directors ...............................................................................................................................34 Foundations and Grant-Making Institutions ................................................................................................34 MHC Staff ......................................................................................................................................................34 Acknowledgements ......................................................................................................................................34 MHC Individual Members .............................................................................................................................35 MHC Organizational Members .....................................................................................................................35 www.metropolitanhousing.org ii Introduction a) Property is dilapidated, unsanitary, unsafe, vermin infested or otherwise dangerous to the safety of persons, or is unfi t for NE OF THE MOST URGENT HOUSING ISSUES in the its intended use, or Louisville area is that of vacant